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Analyst Warns - ISP CAP's Threat To IPTV

Posted: 30th Nov, 2007 By: MarkJ
StrategyEye Digital Media analyst Aleksandra Bosnjak has warned that UK ISP's could impose tougher peak-time service restrictions in the face of growing online video systems, potentially limiting the growth of Internet TV (IPTV):

“UK ISPs will continue to cap download speeds at peak times when consumers can actually sit down and watch or download on-demand TV programming. With so many pressures on the UK Internet pipes, there is a natural limit as to how effective broadcasters’ [Video content] offers can be. It would be interesting to see more details on ISP’s reactions and revenue sharing structures between all parties involved.”

Bosnjak was speaking in response to the recent Video-on-Demand (VoD) tie up between the BBC, ITV and Channel4, which aims to put forward a consolidated broadband video strategy.

Unfortunately he's quite correct, although many ISP's already impose such restrictions. Personally we would prefer to see customers given some choice, simply imposing more aggressive limits without offering less restrictive choices as an alternative is only going to cause churn.

Sadly in the UK our market is increasingly saturated with masses of unrealistically priced cheaper deals and “FREE” broadband promotions, which may well gain a lot of customers but can suffer through rising usage requirements. Typically it’s easier to introduce further restrictions than it is to raise the price.

Speaking to some friends recently I was struck by how much perceptions in society have changed, with many people expecting TalkTalk style prices from every ISP and viewing rivals as over-priced. Unrealistic expectations indeed.
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